Kitsap County Assessor

Transcription

1 Documentation for Area 3 South - Port Orchard and South Kitsap UGA Tax Year: 2019 Appraisal Date: 1/1/2018 Property Type: Restaurants, Bars, and Taverns Updated 5/16/2018 by CM20 Area Overview Port Orchard including Gorst, Highway 3, Bremerton Airport, Highway 16. Property Type Overview Restaurants are constructed for the purpose of preparation and sale of food and beverages. The average dining area is 60 to 70 percent of the gross building size. The balance is used by the kitchen, storage, and prep areas. Bars and taverns are designed mainly for the sale of beverages with limited food production and typically will have a higher seating ratio. There are approximately 114 properties countywide improved with single tenant buildings developed as restaurants or bars/taverns. Sizes range between 388 and 10,100 square feet with a countywide average of 3,850 square feet. Area 1 has 21 restaurants and three bars/taverns representing 2 of the overall population countywide. Sizes range from 2,135 to 6,410 square feet with an overall average of 4,292 square feet. Land to Building Ratio: The national land to building ratio for this property type is 8-10:1. The countywide land to building ratio for this property type is: 8.6:1. The land to building ratio is used to determine excess or surplus land. Review of zoning requirements such as total lot coverage or requirements, as well as topography and easements, must also be considered before calculating value for this land. Economic Overview: Sales of restaurants or bars/taverns are infrequent. Valuation Summary Approach Used: Income Analysis and Conclusion Summary: The three approaches to value were considered. The cost approach was given little consideration in the appraiser's final analysis. Cost approach components such as replacement cost new, effective age, and depreciation are difficult to accurately calculate in a mass appraisal model. A market/sales comparison approach uses sale prices of comparable properties to calculate value. The market/sales approach was not applied as Kitsap County lacks sufficient, recent sales. The income approach was selected as the best method for valuing these properties. The data used to develop our current model data was collected from our mail survey, site visits, local sales, national publications, and data supplied for review or appeal. Model Calibration Preliminary Ratio Analysis: Analysis of 6 sales resulted in a mean ratio of 85%, a median ratio of 78%, and a coefficient of disperson (COD) of /Sales Comparison Approach Data and Analysis Sales: Range of Sale Dates: 1/1/2016 to 12/31/2017. A total of 6 local sales, and 0 regional sales, and 0 national sales were used in the sales analysis. Additional information is provided on the sales analysis Printed 12/3/2018

2 Property type: Restaurants, Bars, and Taverns (continued) data sheet. Kitsap County attempts to review, analyze, and validate via telephone, mail, or in person interviews, all commercial sales within the county for inclusion or exclusion in our market/sales approach. /Sales Rates: Sales ranged from $54.42 to $ per square foot. Income Approach and Data Analysis Values were calculated using a triple net (NNN) income model. Income and expense information was collected from mailed surveys, property representatives, on-site visits, and market research (publications, newsletters, websites, etc.) Insufficient data was available from individual population areas. s were reviewed countywide. and vacancy rates were adopted from retail. Data: The Assessor validated rents from 19% of the market. Typical reported rents had a range of $6.56 to $ We selected $6.16 to $26 for our model. Vacancy Data: Typical reported vacancy had a range of to 10. We selected 1 to 25% for our model. Expense Data: Typical reported expense had a range of 17% to 32%. We selected 6% to 6% for our model. Capitalization Rate (Cap) Data: Typical sale cap rates ranged from to. We selected 8% to 8.75% for our model. Cap rates from local sales were reviewed. Additional cap rate information from national publications was reviewed. The Calkain Q Report lists casual dining between 4.5 and 8.44% with an average cap rate of 6.17%. Boulder Group Q Net Lease Casual Dining Report has cap rates ranging from 5.55% to 6.75%. Income Model Value Range: The income approach calculates a range of values from $49.63 to $ per square foot. Final Ratio Analysis: Analysis of 6 sales resulted in a mean ratio of 89%, a median ratio of 85%, and a coefficient of disperson (COD) of Sources Kitsap County Board of Equalization appeal documentation. Washington State Board of Tax appeal documentation. Kitsap County income and expense surveys. Kitsap County sales questionaires. The Dictionary of Real Estate Appraisal, Appraisal Institute, Third Edition, 1993 Property Appraisal and Assessment Administration, IAAO, 1990 Glossary for Property Appraisal and Assessment, IAAO,1997 LoopNet - Commercial Brokers Association - Printed 12/3/2018

3 Eating & Drinking - Restaurant & Bar - Model Definition Class Location Construction Exterior Finish Interior Finish Age/Condition Unit size Wall Height Parking Waterfront, view amenity, New or recent complete renovation, Heavy Frame, Individual design, ornamental Good quality Smaller structures and/or superior location with in excellent to very good condition, Tendency Wood, Steel, exterior, good quality finish finish, insulation, tend to have higher Ample off high traffic flow, good very little to no deferred maintenance toward higher A Concrete, and fenestration, mix of floor covering, SF rents if all else is street paved visibility, corner location, and or obsolescence evident, all major ceilings and Metal, or textured concrete, brick, tile, wall finish, trim, equal (Restaurant < usually has synergy from short-lived items are like new, high vaulted areas Masonry wood, metal, or stucco heat system 2,000sf) curb appeal B Good visibility on or near a main highway or major road with good traffic flow, may have synergy from Wood, Steel, Concrete, Metal, or Masonry Better than average design, good quality finish and fenestration, mix of concrete, brick, tile, wood, metal, or stucco Better quality finish, floor finish, trim, heat system 7 to 15 year effective age, little deferred maintenance evident, but not everything is new, no obsolescence evident, appearance and utility above the basics Smaller to average structures tend to have higher SF rents if all else is equal (Restaurant 2,000sf - 3,200) Tendency toward higher than typical ceilings, could have vaulted areas Ample off street paved C Visible, average traffic flow, Wood, Steel, or may have some synergy from Concrete Frame Average design, typical finish and fenestration, concrete, wood, stucco, or metal with mix of other exterior Average quality finish, typical floor finish, trim, heat system 15 to 25 year effective age, some deferred maintenance and/or functional obsolescence evident but major components still function and have utility, not unappealing Average or typical size (Restaurant 3,200sf - 3,945 sf, Bar 2,700sf) Typical or average ceiling height Sufficient off street paved D Limited visibility, near a main road, little to no synergy from Wood or Concrete Frame Plain design, less than typical finish and fenestration, sheet, metal, wood, concrete, or stucco Plain, inexpensive finish, floor finish, and heat year effective age, deterioration is somewhat worse than normally expected, some obvious deferred maintenance and/or functional obsolescence, appears worn Average to large size, larger structures tend to have lower rents per SF if all else is equal (Restaurant 3,945sf - 5,000sf) Lower than typical ceiling height Limited off street E Side street or not visible, low traffic flow, negative synergy Wood or pole frame Simple very plain design, little fenestration and very plain finish, inexpensive exterior sheet, wood, or metal covering Minimally or poorly finished, inexpensive floor finish, and heat 35+ years, older or very obvious deferred maintenance and/or functional obsolescence, deterioration much worse than normal, several major components need repair or replacement, substandard utility, unappealing Larger structures tend to have lower rents per SF if all else is equal (Restaurant 5,000sf +) Low ceiling height Limited to no off street, may be gravel NOTE: Properties usually have extensive food service, are freestanding structures, and may have a separate drinking lounge area. Some lounge areas may need to be valued using bar. Lack of cooking facilities, wiring, plumbing - consider retail for highest and best use. If property is located in a retail strip, use retail Industry standard median freestanding restaurant size is approximately 3,050 square feet with average size approximately 3,200 square feet - 4,000 square feet. Countywide freestanding median restaurants size is 3,995 square feet with average size of 4,428 square feet. Countywide median freestanding bar size is approximately 2,766 square feet. Average freestanding bar size is approximately 2,747 square feet. Restaurants have 6-8 of square feet in dining rooms, 2-4 in kitchens, preparation, and storage areas. Bars have significantly less or lack a kitchen area.

4 Tax Year: 2019 Property Type: Eating & Drinking Neighborhood: Bar Rest Not Used Club Class A Class B Class C Class D Class E Income Mode

5 Local Income Survey for Eating & Drinking - Restaurant PGI per Unit Vacancy EGI per Unit Expense % $33.42 $ % $32.21 $32.21 $26.88 $ % $25.45 $ % $24.09 $24.09 $24.09 $24.09 $22.91 $22.91 $22.71 $22.71 $22.10 $22.10 $20.51 $ $19.68 $19.68 $19.23 $ % $18.72 $18.72 $18.41 $18.41 $18.02 $18.02 $17.85 $17.85 $17.50 $17.50 $17.38 $17.38 $17.18 $17.18 $17.14 $17.14 $16.07 $16.07 $ $ % $14.65 $ % $13.82 $13.82 $13.51 $13.50 $13.49 $13.49 $12.53 $12.53 $12.36 $12.36 $ % $11.34 $11.85 $ % $10.85 $10.85 $9.90 $9.90 $9.07 $9.07 $9.04 $9.04 $8.57 $8.57 NOI per Unit $30.31 $32.21 $20.16 $10.51 $24.09 $24.09 $22.91 $22.71 $22.10 $16.24 $19.68 $14.04 $18.72 $18.41 $18.02 $17.67 $17.50 $17.20 $17.18 $17.14 $16.07 $9.17 $10.55 $13.68 $13.50 $13.49 $12.40 $12.36 $11.34 $9.84 $10.85 $9.90 $9.07 $9.03 $8.57 Printed: 5/16/2018

6 Local Income Survey for Eating & Drinking - Restaurant $8.50 $8.50 $6.56 $6.56 $6.48 $6.48 $6.15 $6.15 $8.50 $6.56 $6.48 $6.15 Local Income Survey for Eating & Drinking - Bar PGI per Unit Vacancy EGI per Unit Expense % $18.75 $18.75 $1 $1 $8.70 $8.69 $ $0.00 NOI per Unit $18.75 $1 $8.69 $0.00 Printed: 5/16/2018

7 KITSAP COUNTY ASSESSOR Eating & Drinking - Countywide Sales 01/01/ /31/2017 Nbrhd Type Parcel No. ProjectName Year RC #Units Acres VC1 Sales Date Excise Sales Price Adjusted Sales Price Restaurant Wheaton Way - Los Cabos 1964 C V 3/20/ EX01731 $ 310,000 $ 310,000 $ $ 348,970 $ 168 $ 349, % The Curry Indian Cuisine & Restaurant Lounge 1942 D V 5/16/ EX04139 $ 160,000 $ 160,000 $ $ 243,844 $ - $ 243, % Bar The Garage Bar & MF Land Land C D 1/14/ EX $ 800, $ 800,000 $ $ 551,612 $ 284,240 $ 852, % 104 N Callow - Pho Tai Restaurant Restaurant 1979 D V 4/22/ EX02964 $ 385,000 $ 385,000 $ $ 199,056 $ 199,056 52% Restaurant Restaurant Manette 1940 A V 5/17/ EX03268 $ 299,000 $ 274,000 $ $ 132,717 $ 132,717 48% Restaurant Auto Repair, Jimmy D's Diner D V 7/27/ EX05444 $ 600,000 $ 600,000 $ $ 179,160 $ 199,450 $ 378,610 63% Price $/SF Model Value Other Total Value Ratio Count 6 Median 85% Mean 89% AAD 35% COD Removed sales Nbrhd Type Parcel No. ProjectName Year RC #Units Acres VC1 Sales Date Excise Sales Price Adjusted Sales Price Price $/SF Invalidation Restaurant Denny's Kitsap Way M 6/22/ EX04211 $ 1,000,000 $1,000,000 $ Tenant purchased, no appraisal Restaurant Rb's Fish & Chips - Mile Hill Dr M 8/26/ EX06242 $ 410,000 $ 410,000 $ Tenant purchased Restaurant Hiro Sushi Restaurant M 2/23/ EX01631 $ 165,000 $ 165,000 $ FSBO, contiguous purchaser, fixtures included Restaurant Ginos Restaurant R 9/8/ EX06792 $ 1,390,000 $1,390,000 $ Restaurant Kitsap Way - Former Panda Inn E 9/16/ EX06978 $ 180,000 $ 180,000 $ Bar Old Town Pub 1925 E X 10/25/ EX08101 $ 300,000 $ 300,000 $ Wheaton Way - IHOP Restaurant U 11/16/ EX08839 $ 450,000 $ 450,000 $ Restaurant Bar Toy's Topless 1944 E N 1/19/ EX00470 $ 375,000 $ 375,000 $ Bar th Hole Tavern B M 6/13/ EX04712 $ 1,000,000 $1,000,000 $ Restaurant China West 1944 C /30/ EX07268 $ 260,000 $ 260,000 $ Remodel after sale. Estate sale, remodel after sale. Exempt Change of use. Remodel after sale. Not exposed to market. Family sale.